RBI has fined Punjab National Bank and ICICI Bank for not complying with standards
Mumbai:
The Reserve Bank of India (RBI) fined Rs 1.8 crore to Punjab National Bank (PNB), while ICICI Bank was fined Rs 30 lakh for lack of regulatory compliance.
According to a central bank statement, PNB was found guilty of violating the provisions of the Banking Regulations Act, 1949, regarding the pledge of its shares.
RBI investigations revealed that PNB held shares in the borrower’s companies, as pledgers, in amounts exceeding 30% of the contributed equity of those companies.
After going through the submissions made by the bank, RBI believes that this breach has been ordered to impose a fine and therefore a fine of Rs 1.8 crore has been imposed on PNB.
As for ICICI Bank, RBI said that after conducting a regulatory inspection to evaluate banking supervision, it found that it was not complying with instructions related to fee collection not maintaining a minimum balance in the account. savings.
However, the RBI has made it clear that in both cases, penalties are applied to regulatory compliance lapses and it is not an assertion of the validity of any transaction or agreement. agreements that banks enter into with their respective customers.
.
